@jonpagel - the monthly payment is NOT impacted. it just means the loan will be paid off in fewer payments.
but it will change the split between interest and principal each month. Interest will be a lot less and principal will be a lot more each month, but the payment stays the same.
On a fixed rate loan, the monthly interest is calculated as the a) the current loan balance b) times the interest rate c) divided by 12. THat is the interest....then take the fixed rate payment and subtract the interest and what remains is the reduction in principal
do the same thing for the next month and the interest will be slightly less and the principal will be slightly more, but the payment is the same.
